Tim Hortons Inc. 8-K (Events or Changes Between Quarterly Reports) 2009-02-20

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 20, 2009
TIM HORTONS INC.

(Exact n am e of re gistran t as spe cifie d in its ch arte r)
Delaware 001-32843 51-0370507

(State or oth e r jurisdiction (C om m ission File Nu m be r) (IRS Em ploye r
of in corporation ) Ide n tification No.)
874 Sinclair Road, Oakville, ON, Canada L6K 2Y1

(Addre ss of prin cipal e xe cu tive office s) (Zip C ode )
(905) 845-6511
(Re gistran t’s te le ph on e n u m be r, inclu ding are a code )
Not Applicable
(Form e r n am e or form e r addre ss, if ch an ge d since last re port)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
® Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
® Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
® Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
® Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.

On February 20, 2009, Tim Hortons Inc. (the “Company”) issued a press release containing financial information relating to its
fourth quarter and fiscal year end 2008 results and certain other information. The press release is attached hereto as Exhibit 99.1.
Item 2.05 Costs Associated with Exit or Disposal Activities.

In November 2008, the Company disclosed its intention to rationalize up to 15 underperforming Company-operated restaurants in
southern New England between the end of 2008 and early 2009 and that such rationalization was expected to result in an asset
impairment charge for the affected restaurants. The Company also previously disclosed that management would undertake a
further impairment analysis in the fourth quarter of 2008 related to the operating markets affected by such closures and that the
2008 operating income target did not contemplate an impairment charge that was likely to occur in the fourth quarter.
In late 2008/early 2009, the Company did, in fact, close 11 underperforming primarily company-operated restaurants in two
southern New England markets. The impairment review mentioned above was also performed with respect to the affected markets.
In connection with the preparation of the Company’s annual audited financial statements for the fiscal year ended December 28,
2008, the Company determined that the future expected cash flows in these markets were insufficient to recover the carrying value
of the assets in such markets, resulting in an impairment charge. The following table outlines the charges associated with the
asset impairment and the restaurant closures, which the Company recorded in its year-end financial results:
Re stauran t closu re
Im pairm e n t costs Total
(in thou san ds)
Impairment of assets $ 13,703 $ 2,856 $16,559
Lease commitments — 4,501 4,501
Other — 206 206
Total asset impairment and other $ 13,703 $ 7,563 $21,266
Further information regarding the store closure costs and related asset impairment charge is set forth in the press release attached
as Exhibit 99.1.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
Election of Director
Our Board of Directors increased the size of the Board from 11 to 12 directors and, effective March 1, 2009, appointed
Ms. Catherine L. Williams, age 58, as a director of the Company to fill the vacancy thus created.
Ms. Williams has been a Managing Director of Options Capital Limited, a private investment company, since 2007. From 2003 to
2007, Ms. Williams was Chief Financial Officer for Shell Canada Limited, a subsidiary of Royal Dutch Shell. From 1984 to 2003,
Ms. Williams held various positions with Shell Canada Limited, Shell Europe Oil Products, Shell Canada Oil Products and Shell
International. Prior to 1984, Ms. Williams was a financial analyst for Nova Corporation and held various positions with the Bank
of Canada prior to joining the Shell companies. Ms. Williams currently serves as a director for Enbridge Inc. where she is a
member of the Audit, Financial and Risk Committee and the Corporate Social Responsibility Committee. She is also the Chair of
the Board of Governors of Mount Royal College, and she serves on the Advisory Board for the Dean of the Business School at
Queens’ University. In 2008, she served as a member of the Federal Government Advisory Panel on Canada’s System of
International Taxation. She is a graduate of the University of Western Ontario and Queen’s University.
The Board has not determined which committee or committees of the Board on which Ms. Williams will serve, but expects that it
will do so at its regularly scheduled meeting in May, 2009. Ms. Williams will receive the same compensation as the Company’s
other non-employee directors.
Mr. Ronald W. Osborne was also appointed to the Audit Committee of the Board effective February 18, 2009.
Compensatory Arrangement of Certain Officers

The following actions with respect to the 2009 compensation of the Executive Chairman of the Company, Mr. Paul House, and
certain other actions affecting 2009 compensation for the Company’s named executive officers, were taken by the Human
Resource and Compensation Committee, with the approval of the Board of Directors, where appropriate.
Mr. House’s base salary will decrease to Cdn.$500,000 from his current base salary of Cdn.$600,000.
The annual cash incentive payout amount was established for Mr. House for 2009 under the Company’s Executive Annual
Incentive Plan (the “EAPP”), payable in February of 2010, at a target value of Cdn.$500,000. The amount payable under the EAPP
is dependent upon the extent to which the Company achieves operating income, or EBIT, and net income objectives
for 2009 that were also established on February 18, 2009. The target payout amount represents a decrease of Cdn.$150,000 from
Mr. House’s 2008 target level. The incentive payment to Mr. House may exceed or fall below the target value set forth above
depending upon the Company’s actual EBIT (as to 75% of the award) and net income (as to 25% of the award) performance
against the EAPP payout curves, as discussed further below.
New payout curves were established for the EAPP program for 2009, which apply to all named executive officers. The EAPP
payout curves have been modified from 2008 to reflect a maximum payout of 150% of target if actual EBIT/net income performance
is 10% or greater than the targeted EBIT/net income performance objective(s). A minimum payout of 50% of target is possible if
the lesser of the following is achieved: (i) actual prior-year EBIT/net income performance, as may be adjusted, and (ii) 90% of the
targeted EBIT/net income performance objective(s). Various payouts along the range of the established EBIT and net income
curves from the minimum to maximum levels may be made. Additional information regarding the EAPP and the applicable payout
curves for EAPP will be described more fully in the Company’s 2009 proxy statement to be filed in March, 2009.
With respect to long-term incentive compensation, Mr. House’s 2009 target value has been reduced to Cdn.$547,645 from
Cdn.$806,000 in 2008. The long-term equity program for named executive officers will remain the same as was implemented in 2008,
with performance-based restricted stock units, or P+RSUs, representing 50% of the award (Cdn.$273,823 for Mr. House), and
options with tandem stock appreciation rights (“SARs”), representing 50% of the award (Cdn.$273,823 for Mr. House). This
represents a total reduction of Cdn.$258,355 from the 2008 targeted long-term incentive value for Mr. House. The long-term
incentive target value for all named executive officers, including Mr. House, remains subject to possible reduction pending the
outcome of considerations with respect to the impact of various valuation methodologies for options/SARs on total
compensation.
As with the EAPP payout, the value of long-term incentive compensation from P+RSUs ultimately received by Mr. House is
dependent upon the extent to which the Company achieves the EBIT performance objective for 2009 under the 2010 P+RSU
program, which was also established on February 18, 2009 to be the same as the EAPP EBIT objective. The 2010 P+RSU award, if
any, would be made in May of 2010.
The payout curve for the 2010 P+RSU program, which applies to all named executive officers, was modified such that it will be the
same as the EAPP EBIT payout curve, as described above. Various payouts along the range of the established P+RSU payout
curve from the minimum to maximum levels may be made. Additional information regarding the P+RSU and option/SAR programs
and the applicable payout curve for the 2010 P+RSU program will be described in the Company’s 2009 proxy statement to be filed
in March, 2009.
Other than the modifications for Mr. House and the other changes affecting the named executive officers generally described
above, there were no other material changes to compensation arrangements for the named executive officers for 2009.
Item 8.01 Other Events.

Dividends. On February 20, 2009, the Company announced that its Board of Directors has approved an increase in the quarterly
dividend to Cdn.$0.10 per share and the first payment of a dividend at the new rate is payable on March 17, 2009 to stockholders
of record on March 3, 2009. The declaration of any and all further dividends is subject to the Board’s discretion. The full text of
the Company’s press release relating to the dividend rate increase and declaration is attached hereto as Exhibit 99.2.
Stock Repurchase Program. On February 20, 2009, the Company announced that the repurchases under the previously
announced stock repurchase program for up to $200 million in shares of the Company’s common stock is planned to commence in
March 2009. The new program is subject to receipt of final regulatory approval, and represents a planned allocation of up to $200
million, or a maximum of 5%, of the Company’s outstanding shares. Shares of the Company’s stock will be repurchased under the
program at management’s discretion in compliance with regulatory requirements, and given prevailing market, cost, and other
considerations, unlike the previous program which included a Rule 10b5-1 program at inception. Further information regarding the
stock repurchase program is set forth in the press release attached hereto as Exhibit 99.3.
Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
Exhibit 99.1 Press release issued by the Company dated February 20, 2009 regarding the release of quarterly
financial results and other information.
Exhibit 99.2 Press release issued by the Company dated February 20, 2009 announcing Cdn.$0.10 quarterly
dividend.
Exhibit 99.3 Press release issued by the Company dated February 20, 2009 announcing the commencement of
2009 repurchase program.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
TIM HORTONS INC.
Date: February 20, 2009 By: /s/ Jill E. Aebker

Jill E. Aebker
Associate General Counsel and Secretary
Exhibit 99.1
FOR IMMEDIATE RELEASE

(All amounts in Canadian dollars)
LOGO
Tim Hortons Inc. Announces

2008 Fourth Quarter and Year End Results
Solid performance in core Canadian business;
operating income lower due to previously announced restaurant closures
and related asset impairment charge
Financial & Sales Highlights
2008 2007
% Fu ll Fu ll %
Q 4 2008 Q 4 2007 C h an ge Ye ar Ye ar C h an ge
Revenues $ 563.7 $ 515.4 9.4% $2,043.7 $1,895.9 7.8%
Operating income $ 107.9 $ 116.2 (7.2)% $ 443.6 $ 425.1 4.3%
Adjusted Operating Income(1) $ 129.1 $ 116.2 11.1% $ 467.4 $ 425.1 9.9%
Effective Tax Rate 32.8% 32.6% 32.8% 34.0%
Net Income $ 69.1 $ 75.7 (8.6)% $ 284.7 $ 269.6 5.6%
Diluted Earnings Per Share (EPS) $ 0.38 $ 0.40 (5.9)% $ 1.55 $ 1.43 8.6%
Fully Diluted Shares 181.4 187.0 (2.9)% 183.5 188.8 (2.8)%
(1) Adjusted operating income is a non-GAAP measure. For information regarding this measure and a reconciliation to U.S. GAAP, please
refer to “Disclosure of Non-GAAP Financial Measure” and Table 1 in this release.
($ in millions, except EPS. Fully diluted shares in millions. All numbers rounded.)
2008 2007
S am e -Store S ale s (2) Q 4 2008 Q 4 2007 Fu ll Ye ar Fu ll Ye ar
Canada 4.4% 3.8% 4.4% 6.1%
U.S. (0.1)% 4.2% 0.8% 4.1%
(2) Includes sales at Franchised and Company-owned locations.
As of December 28, 2008, 99.5% of the Company’s restaurants in Canada and 96.3% of the U.S. restaurants were franchised.
Highlights
• Fourth quarter systemwide sales(3) increased 8.2% on a constant currency basis
• Fourth quarter EPS of $0.38 includes negative impact of approximately $0.08 per share for restaurant closure costs (11 units) and a
related asset impairment charge
• 161 new units opened in fourth quarter, 266 for full year
• Board approves 11.1% increase in quarterly dividend to $0.10 per share
• $200 million share repurchase program planned to commence in March 2009
• 2009 outlook and targets established
OAKVILLE, ONTARIO, (February 20, 2009): Tim Hortons Inc. (NYSE: THI, TSX: THI) today announced its results for the fourth quarter
and fiscal year ended December 28, 2008.
“Sales growth in our core Canadian business was quite strong in the fourth quarter considering the challenging economic circumstances.
At the same time, we took decisive steps to improve profitability in our developing U.S. business by closing a number of underperforming
restaurants in southern New England, as announced late last year. For the full year, we had consolidated operating income growth of close to
10% excluding non-comparable items and we are pleased with this overall performance. We continue to focus on executing our growth
agenda,” said Don Schroeder, president and CEO.
Consolidated Results
In the fourth quarter systemwide sales( 3) grew 8.2% on a constant currency basis and 9.5% including the impact of currency. Same-store
sales increased 4.4% in Canada and were down 0.1% in the U.S. for the same period. Total revenues were up 9.4% to $563.7 million in the
fourth quarter, compared to $515.4 million in the same period of 2007.
Same-store sales were driven by an active promotional program that included Chili and Garlic Toast and the return of Chicken Fajita
wraps in Quebec. Candy Cane Donuts and Candy Cane hot chocolate were promoted in December, when we were also promoting our holiday
merchandise program which included branded Tim Hortons china mugs, ceramic/steel coffee scoops, TimCards® and chocolate bark (Candy
Cane and Milk Chocolate Almond). We also introduced combo programs in Canada and the U.S during the fourth quarter. In Canada, we
offered Pumpkin Spice Donuts and Muffins with Tea. We also bundled Creamy Field Mushroom Soup with Ham and Swiss sandwiches. In the
U.S., our combo programs included Pumpkin Spice Donuts with medium Coffee at an attractive price point and we also promoted Turkey
Bacon Club sandwiches with Hearty Potato Bacon soup.
Sales growth in the fourth quarter of 11.0%, primarily consisting of warehouse sales, reflects strong systemwide sales during the fourth
quarter and the impact of currency translation, partially offset by fewer Company-operated restaurants. New products managed through our
supply chain also contributed to sales growth. Rents and royalties increased 10.2% for the same period, consistent with systemwide sales
growth. Franchise fees decreased 8.5% year-over-year, primarily due to the timing of revenue recognition from our franchise incentive
program, a higher mix of non-standard units in the fourth quarter versus full-serve restaurants compared to the previous year, and fewer
replacements and renovations. These factors were partially offset by higher resales of restaurants to franchisees.
Fourth quarter cost of sales were up 9.8%, mainly driven by sales growth. Operating expenses rose by 11.7% in the fourth quarter. The
largest components of the operating expense increase were the higher number of units opened in 2008, percentage rent increases on variable
rent contracts, and the impact of foreign exchange on U.S. currency translation. Franchise fee costs were down 11.2%, consistent with lower
franchise fee revenues described previously.
Operating income for the fourth quarter was $107.9 million, a decline of 7.2% from $116.2 million in the same period last year. The benefit
of strong systemwide sales growth and higher warehouse sales partially offset the impact of restaurant closure costs and a related asset
impairment charge. Excluding these costs, adjusted operating income (1) growth for the quarter was solid, up 11.1% year-over year. A total of 11
underperforming restaurants were closed in southern New England, 10 of which were Company-operated locations. In conjunction with its
decision to close certain underperforming restaurants, the Company undertook an asset impairment review in the affected markets. As a result
of these activities, $7.6 million in restaurant closure costs and a related market impairment charge of $13.7 million were recorded in the fourth
quarter, for a total of $21.3 million.
Operating income was also affected by a 16.3% increase in fourth quarter general and administrative costs compared to the same period
last year. These increased costs reflect significantly higher professional fees, the timing of franchisee meetings and related travel costs
compared to last year, and the impact of foreign exchange translation from our U.S. segment. Higher professional fees in the quarter were due
mainly to a feasibility assessment undertaken relating to the Company’s corporate structure (see Corporate Developments for further
information).
Equity income increased during the quarter to $10.5 million compared to $9.6 million last year, an increase of 9.4%. Equity income
benefited from an asset sale in one of our joint ventures in the fourth quarter and sales growth helped drive higher income contributions from
the Company’s two largest joint ventures.
Net interest expense was $5.0 million in the fourth quarter compared to $4.0 million in the same period last year. The increase is the result
of lower interest income and higher interest expense on capital leases offset partially by lower interest costs on external debt.
Fourth quarter net income was $69.1 million, decreasing 8.6% from $75.7 million last year. The decrease in net income was the result of
$15.4 million in after tax costs associated with previously announced restaurant closures, and the related asset impairment charge. The
effective tax rate for the fourth quarter of 2008 was 32.8%, slightly higher than 32.6% in the prior year comparable period.
Diluted earnings per share (EPS) were $0.38, down 5.9% compared to $0.40 in the fourth quarter of 2007, and includes a $0.08 impact from
the asset impairment and related closure costs.
For the fiscal year ended December 28, 2008, total revenues were approximately $2.0 billion, increasing 7.8% from the approximately $1.9
billion recorded in 2007. Operating income for 2008 was $443.6 million, up 4.3% compared to $425.1 million last year. Excluding the asset
impairment and related closure costs, and a previous management restructuring charge of $3.1 million ($2.5 million net of savings), adjusted
operating income for the full year increased 9.9% to $467.4 million. The effective tax rate was 32.8% in 2008 compared to 34.0% in 2007, slightly
below the targeted rate of 33% to 35%. Net income for the full year increased by 5.6% to $284.7 million, compared to $269.6 million in 2007. Net
income includes a $17.1 million after-tax impact from the asset impairment and related closure costs described previously and the management
restructuring charge announced in the second quarter. Diluted earnings per share were $1.55 in 2008 compared to $1.43 in 2007.
Segmented Performance Commentary

Canada
Canadian same-store sales in the fourth quarter rose 4.4%, of which approximately 3.1% was due to pricing. A strong menu promotional
program, advertising and focus on holiday merchandise contributed to the sales performance in a challenging economic climate.
The Canadian segment experienced slightly higher margins due to higher sales and distribution efficiencies, partially offset by higher
general and administrative costs, during the quarter. Operating income in the Canadian segment was $137.1 million, an increase of 8.7%
compared to $126.2 million in the fourth quarter of 2007. A total of 55 restaurants were opened in Canada during the quarter.
For the full year, Canadian same-store sales growth also rose 4.4%, of which pricing contributed about 3.4%. Operating income in 2008
was $507.0 million, an increase of 8.4% compared to $467.9 million in 2007. A total of 130 restaurants were opened in Canada during 2008.
United States
Same-store sales in the fourth quarter in the U.S. segment had a slight decline of 0.1%. A rapid deterioration of the macro-economic
climate and consumer confidence in the U.S. contributed to another challenging quarter in terms of the sales environment for our U.S.
business, where the Tim Hortons brand is not as developed. Proactive changes in menu promotional activities made during the quarter,
including offering product combos and bundles with attractive price points, helped offset the impact of a challenging environment. We
experienced a decline in transactions in the fourth quarter in the U.S. segment as pricing increases did not fully translate into sales growth.
Previous pricing contributed approximately 3.2% to fourth quarter sales.
The U.S. segment had an operating loss of $21.3 million in the fourth quarter, which was driven entirely by the $21.3 million in asset
impairment and related closure costs. Currency translation raised U.S. segment revenues and costs by approximately 15% respectively during
the quarter compared to the same period in 2007. A total of 106 locations were opened in the U.S. during the quarter.
For the full year, same-store sales increased 0.8% in the U.S. business. Pricing accounted for approximately 2.2% of same-store sales. The
U.S. segment had an operating loss of $26.5 million in 2008, which includes the $21.3 million asset impairment and related restaurant closure
charges. Management is targeting 2009 break-even operating income performance on a full year basis in its U.S. segment (see 2009 Outlook
and Targets).
A total of 136 locations were opened in the U.S. for the full year. Of this full-year total, 87 were non-standard units, including 73 self-
serve locations. We entered into an agreement with Tops Friendly Markets that resulted in approximately 80 predominantly self-serve and
some full-serve units being opened in New York and Pennsylvania. The Company intends to complement its ongoing standard restaurant
expansion with increased penetration of non-standard units and strategic alliances. In December of 2008 we held grand opening celebrations in
Detroit, Michigan for the Company’s 500th restaurant in the U.S., a significant milestone in our ongoing brand growth and development. The
Company also recently announced a co-branding test with Cold Stone Creamery which will see up to 50 locations from each chain transition to
offer branded products of the other company.
Internationally, in Ireland and the U.K., there are now 293 licensed locations primarily under the Tim Hortons brand, in the convenience
store channel.
Corporate Developments
Corporate Structure
The Company commenced a review in the fourth quarter, with the support of external advisors, to assess various opportunities related to
our corporate structure. This review is focused on tax and operational efficiencies and also addresses changes to the Canada-U.S. tax treaty
ratified in December of 2008 which, if not addressed, could negatively affect our effective tax rate.
This review was undertaken as a result of the expiry of time constraints under U.S. tax rules and the tax sharing agreement we entered
into at the time of our IPO that limited our ability to engage in certain acquisitions, reorganizations and other transactions that could have
affected the tax-free nature of the spin-off from Wendy’s. Now that the time constraints have expired, we believe that opportunities may exist
for us to achieve significant financial and other benefits from reorganizing our corporate structure, including potentially converting our parent
company from a U.S. to a Canadian corporation. Tim Hortons has its roots and heritage in Canada. Based on the evaluations that we have
conducted thus far, and which are ongoing, we believe that such an event would be in the best interest of our shareholders, driving long-term
value by bringing our effective tax rates closer to Canadian statutory rates. We would also expect to incur certain charges for discrete items,
the majority of which would be non-cash, and transactional costs in the year of implementation. If we were to implement such a transaction in
2009, the impact of the charges and costs would result in our 2009 targeted tax rate exceeding the identified range (see 2009 Outlook and
Targets) and, potentially, could cause our targeted operating income to fall below the expected range. There can be no assurance that we will
be able to complete a reorganization of our Company or any other transaction for that matter or that the expected benefits will ultimately be
realized, given the various assessments, conditions, and approvals that remain outstanding in connection with the initiatives described above.
Board of Directors Appointment

The Board has appointed Catherine L. Williams as a director of the Company effective March 1, 2009. Ms. Williams has been a Managing
Director of Options Capital Limited, a private investment company, since 2007. From 2003 to 2007, Ms. Williams was Chief Financial Officer for
Shell Canada Limited, a subsidiary of Royal Dutch Shell. From 1984 to 2003, Ms. Williams held various positions with Shell Canada Limited,
Shell Europe Oil Products, Shell Canada Oil Products and Shell International. Prior to 1984, Ms. Williams was a financial analyst for Nova
Corporation and held various positions with the Bank of Canada prior to joining the Shell companies. Ms. Williams currently serves as a
director for Enbridge Inc. where she is a member of the Audit, Financial and Risk Committee and the Corporate Social Responsibility
Committee. She is also the Chair of the Board of Governors of Mount Royal College, and she serves on the Advisory board for the Dean of the
Business School at Queen’s University. In 2008, she served as a member of the Federal Government Advisory Panel on Canada’s System of
International Taxation. She is a graduate of the University of Western Ontario and Queen’s University.
$200 million Share Repurchase Program

The Company plans to implement its previously announced 12-month share repurchase program starting in March 2009. The share
repurchase program reflects the Company's focus of creating value for shareholders and our strong cash flow and financial position. The new
program is subject to receipt of final regulatory approval, and represents a planned allocation of up to $200 million, or a maximum of 5%, of the
Company’s outstanding shares. For details on the new program, please refer to the news release issued today in conjunction with this
earnings release. Shares purchased under the program will be at management’s discretion, in compliance with regulatory requirements, given
prevailing market conditions and cost considerations, unlike the previous program which included a 10b5-1 program. If a subsequent decision
is made to proceed with changes to the Company’s corporate structure, timing of share repurchases could be affected, including potentially
deferring future purchases subsequent to the first quarter until after a transaction is implemented.
Dividend declared, and 11.1% increase to quarterly dividend approved to $0.10 per share
The Board of Directors has approved an increase in the quarterly dividend to $0.10 per share and the first payment of a dividend at the
new rate is payable on March 17th, 2009 to shareholders of record as of March 3rd, 2009. The Company's current dividend policy is to pay a
total of 20-25% of prior year, normalized annual net earnings in dividends each year, returning value to shareholders based on the Company's
earnings growth.
Dividends are paid in Canadian dollars to all shareholders with Canadian resident addresses whose shares are registered with
Computershare (the Company's transfer agent). For all other shareholders, including all shareholders who hold their shares indirectly (i.e.,
through their broker) and regardless of country of residence, the dividend will be converted to U.S. dollars on March 10th, 2009 at the daily
noon rate established by the Bank of Canada and paid in U.S. dollars on March 17th, 2009.
2009 Outlook & Targets

"In 2009 we plan to maximize opportunities presented in the current economic conditions to expand our Canadian restaurant footprint in
successful growth markets while we take a prudent approach to U.S. development given the significant economic challenges. We are focusing
our efforts on more established U.S. markets and complementing our approach with strategic opportunities to create additional brand
penetration and scale with reduced capital requirements. We have created a menu and marketing program responsive to the economic realities
of our customers and we continue to be relatively well positioned overall due to our price and value brand position," said Don Schroeder,
president and CEO.
The Company has established the following 2009 performance targets*:

• Operating income growth of 11% to 13% (targeted rate of growth is 6% to 8% excluding the impact of the asset impairment and
related closure costs in 2008)
o Includes approximately 1% positive impact of 53rd week in 2009
o Break-even operating income performance in U.S. segment on a full-year basis
• 2009 same-store sales growth of 3% to 5% in Canada and 0% to 2% in the U.S.
• 150 to 180 restaurant openings:
o 120 to 140 restaurants in Canadian segment
o 30 to 40 full-serve restaurants in the U.S. segment, complemented by non-standard locations and sites from strategic
alliances
• Capital expenditures between $180 million to $200 million
• Effective tax rate of 32% to 34%.
*Note: If implemented in 2009, a new corporate structure could have a significant negative impact on the 2009 effective tax rate due to
discrete items, the majority of which are expected to be non-cash, and our operating income growth could be affected by transaction costs.
However, our effective tax rate would be positively impacted in 2010 and beyond as our effective tax rate approaches Canadian statutory rates.
Implications of changes to the tax treaty between Canada and the United States could negatively impact our effective tax rate for 2010 and
future years if not addressed through reorganization or other means.
These financial targets are for 2009 only. These targets are forward-looking and are based on our expectations and outlook and shall be
effective only as of the date the targets were originally issued. Except as required by applicable securities laws, we do not intend to update our
annual financial targets. These targets and our performance generally are subject to various risks and uncertainties ("risk factors") which may
impact future performance and our achievement of these targets. Refer to our safe harbor statement, which incorporates by reference our "risk
factors," set forth at the end of this release, and our Annual Report on Form 10-K for 2007 and for 2008 (to be issued on February 26, 2009).
Disclosure on Non-GAAP Financial Measure

Adjusted operating income is a non-GAAP measure. Presentation of this non-GAAP measure is made with operating income, the most
directly comparable U.S. GAAP measure. Management believes that pro forma adjusted operating income information is important for
comparison purposes to prior periods and for purposes of evaluating management's operating earnings performance compared to target for
2008, which excludes the asset impairment and related closure costs described above and a previously disclosed management restructuring
charge, net of savings. The Company evaluates its business performance and trends excluding amounts related to such items. Therefore, this
measure provides a more consistent view of management's perspectives on underlying performance and is more relevant for comparison
purposes between periods than the closest equivalent U.S. GAAP measure.
Table 1 Pro forma: Adjusted operating income to U.S. GAAP reconciliation
%
Q u arte r En de d Q 4 2008 Q 4 2007 C h an ge
Reported Operating Income $ 107.9 $ 116.2 (7.2)%
Add: Asset impairment and related closure costs 21.3 — N/M
Adjusted Operating Income $ 129.1 $ 116.2 11.1%
%
Ye ar En de d Fu ll Ye ar 2008 Fu ll Ye ar 2007 C h an ge
Reported Operating Income $ 443.6 $ 425.1 4.3%
Add: Asset impairment and related closure costs 21.3 $ — N/M
Add: Management restructuring costs, net of savings(4) 2.5 $ — N/M
Adjusted Operating Income $ 467.4 $ 425.1 9.9%
(4) Originally disclosed as $3.1 million, which did not include savings of $0.6 million realized in fiscal 2008.
($ in millions, all numbers rounded.) N / M – Not Meaningful
Tim Hortons to host conference call at 10:30 a.m. today, February 20th, 2009
Tim Hortons will host a conference call to discuss its fourth quarter and year-end results beginning at 10:30 a.m. Eastern Standard Time
(EST) on Friday, February 20th, 2009. Investors and the public may listen to the conference call by calling (416) 641-6712 or 1 (800) 354-6885 (no
access code required), or through simultaneous webcast by visiting the investor relations website at www.timhortons-invest.com, and clicking
on the "Events and Presentations" tab. A slide presentation will be available to coincide with the conference call on this site. A replay of the
call will be available for one year and can be accessed by calling (416) 626-4100 or 1-800-558-5253. The reservation number for the replay of the
call is 21412008.
(3) Total systemwide sales growth includes restaurant level sales at both Company and Franchise restaurants. Approximately 99% of our
system is franchised as at December 28, 2008. Systemwide sales growth is determined using a constant exchange rate, where noted, to exclude
the effects of foreign currency translation. U.S. dollar sales are converted to Canadian dollar amounts using the average exchange rate of the
base year for the period covered. For the fourth quarter of 2008, systemwide sales growth was up 8.2% compared to the fourth quarter of 2007,
or 9.5% without holding currency constant. Systemwide sales are important to understanding our business performance as they impact our
franchise royalties and rental income, as well as our distribution income. Changes in systemwide sales are driven by changes in average same
store-sales and changes in the number of systemwide restaurants.
Tim Hortons Inc. Overview

Tim Hortons is the fourth largest publicly-traded quick service restaurant chain in North America based on market capitalization, and the
largest in Canada. Tim Hortons appeals to a broad range of consumer tastes, with a menu that includes coffee and donuts, premium coffees,
flavored cappuccinos, specialty teas, home-style soups, fresh sandwiches and fresh baked goods. As of December 28, 2008, Tim Hortons had
3,437 systemwide restaurants, including 2,917 in Canada and 520 in the United States. More information about the Company is available at
www.timhortons.com.
For Further information:

Investors: Scott Bonikowsky, (905) 339-6186 or investor_relations@timhortons.com
Media: Diane Slopek-Weber, (905) 339-6229 or slopek-weber_diane@timhortons.com
TIM HORTONS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of Canadian dollars, except share and per share data)
(Unaudited)
Fourth Q u arte r En de d
$
De ce m be r 28, 2008 De ce m be r 30, 2007 C h an ge % C h an ge
REVENUES
Sales $ 372,055 $ 335,210 $36,845 11.0%
Franchise revenues
Rents and royalties 157,230 142,638 14,592 10.2%
Franchise fees 34,404 37,596 (3,192) (8.5)%
191,634 180,234 11,400 6.3%
TOTAL REVENUES 563,689 515,444 48,245 9.4%
COSTS AND EXPENSES

Cost of sales 322,558 293,829 28,729 9.8%
Operating expenses 58,378 52,272 6,106 11.7%
Franchise fee costs 29,458 33,168 (3,710) (11.2)%
General & administrative expenses 33,850 29,098 4,752 16.3%
Equity (income) (10,490) (9,587) (903) 9.4%
Asset impairment and related closure costs 21,266 — 21,266 N/M
Other expense (income), net 804 437 367 N/M
TOTAL COSTS & EXPENSES, NET 455,824 399,217 56,607 14.2%
OPERATING INCOME 107,865 116,227 (8,362) (7.2)%

Interest (expense) (5,950) (6,236) 286 (4.6)%
Interest income 906 2,268 (1,362) (60.1)%
INCOME BEFORE INCOME TAXES 102,821 112,259 (9,438) (8.4)%

INCOME TAXES 33,694 36,589 (2,895) (7.9)%
NET INCOME $ 69,127 $ 75,670 $ (6,543) (8.6)%
Basic earnings per share of common stock $ 0.38 $ 0.41 $ (0.02) (5.9)%
Diluted earnings per share of common stock $ 0.38 $ 0.40 $ (0.02) (5.9)%
Basic shares of common stock (in thousands) 181,261 186,712 (5,451) (2.9)%
Diluted shares of common stock (in thousands) 181,443 186,956 (5,514) (2.9)%
Dividends per share of common stock $ 0.09 $ 0.07 $ 0.02
N/M - not meaningful

(all numbers rounded)

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of Canadian dollars, except share and per share data)
(Unaudited)
Ye ar En de d
De ce m be r 28, 2008 De ce m be r 30, 2007 $ C h an ge % C h an ge
REVENUES
Sales $ 1,348,015 $ 1,248,574 $ 99,441 8.0%
Franchise revenues
Rents and royalties 601,870 553,441 48,429 8.8%
Franchise fees 93,808 93,835 (27) (0.0)%
695,678 647,276 48,402 7.5%
TOTAL REVENUES 2,043,693 1,895,850 147,843 7.8%
COSTS AND EXPENSES

Cost of sales 1,180,998 1,099,248 81,750 7.4%
Operating expenses 216,605 201,153 15,452 7.7%
Franchise fee costs 87,486 87,077 409 0.5%
General & administrative expenses 130,846 119,416 11,430 9.6%
Equity (income) (37,282) (38,460) 1,178 (3.1)%
Asset impairment and related closure costs 21,266 — 21,266 N/M
Other expense (income), net 208 2,307 (2,099) N/M
TOTAL COSTS & EXPENSES, NET 1,600,127 1,470,741 129,386 8.8%
OPERATING INCOME 443,566 425,109 18,457 4.3%

Interest (expense) (24,558) (24,118) (440) 1.8%
Interest income 4,926 7,411 (2,485) (33.5)%
INCOME BEFORE INCOME TAXES 423,934 408,402 15,532 3.8%

INCOME TAXES 139,256 138,851 405 0.3%
NET INCOME $ 284,678 $ 269,551 $ 15,127 5.6%
Basic earnings per share of common stock $ 1.55 $ 1.43 $ 0.12 8.6%
Diluted earnings per share of common stock $ 1.55 $ 1.43 $ 0.12 8.6%
Basic shares of common stock (in thousands) 183,298 188,465 (5,167) (2.7)%
Diluted shares of common stock (in thousands) 183,492 188,759 (5,267) (2.8)%
Dividends per share of common stock $ 0.36 $ 0.28 $ 0.08
N/M - not meaningful

(all numbers rounded)

CONSOLIDATED BALANCE SHEET
(In thousands of Canadian dollars)
De ce m be r 28, De ce m be r 30,
2008 2007
(Unau dite d)
ASSETS
Current assets
Cash and cash equivalents $ 101,636 $ 157,602
Restricted cash and cash equivalents 62,329 37,790
Accounts receivable, net 159,505 104,889
Notes receivable, net 22,615 10,824
Deferred income taxes 19,760 11,176
Inventories and other, net 71,505 60,281
Advertising fund restricted assets 27,684 20,256
Total current assets 465,034 402,818
Property and equipment, net 1,332,852 1,203,259
Notes receivable, net 17,645 17,415
Intangible assets, net 2,606 3,145
Equity investments 132,364 137,177
Other assets 12,841 9,816
Total assets $ 1,992,627 $ 1,797,131

CONSOLIDATED BALANCE SHEET
De ce m be r 28, De ce m be r 30,
2008 2007
(Unau dite d)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 157,210 $ 133,412
Accrued liabilities:
Salaries and wages 18,492 17,975
Taxes 25,605 34,522
Other 110,518 95,777
Advertising fund restricted liabilities 47,544 39,475
Current portion of long-term obligations 6,691 6,137
Total current liabilities 366,060 327,298
Long-term liabilities
Term debt 332,506 327,956
Advertising fund restricted debt 6,929 14,351
Capital leases 59,052 52,524
Other long-term liabilities 74,072 56,624
Total long-term liabilities 486,163 467,750
Stockholders’ equity
Common stock, (US$0.001 par value per share)
Authorized: 1,000,000,000 shares
Issued: 193,302,977 shares 289 289
Capital in excess of par value 929,102 931,084
Treasury stock, at cost: 11,754,201 and 6,750,052 shares, respectively (399,314) (235,155)
Common stock held in trust, at cost: 358,186 and 421,344 shares, respectively (12,287) (14,628)
Retained earnings 677,550 458,958
Accumulated other comprehensive loss (54,936) (138,465)
Total stockholders’ equity 1,140,404 1,002,083
Total liabilities and stockholders’ equity $ 1,992,627 $ 1,797,131

CONSOLIDATED STATEMENTS OF CASH FLOWS
Ye ar En de d
De ce m be r 28, 2008 De ce m be r 30, 2007
(Unaudited)
CASH FLOWS PROVIDED FROM (USED IN) OPERATING ACTIVITIES
Net income $ 284,678 $ 269,551
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 91,278 83,595
Asset impairment and related closure costs 21,266 —
Stock-based compensation expense 9,630 8,560
Equity income, net of cash dividends 4,519 1,448
Deferred income taxes (13,714) (7,097)
Changes in operating assets and liabilities
Restricted cash and cash equivalents (23,820) (37,790)
Accounts and notes receivable (51,235) 3,171
Inventories and other (3,708) (8,323)
Accounts payable and accrued liabilities 22,723 58,461
Amounts receivable from (payable to) Wendy’s — 406
Other, net 14,398 21,994
Net cash provided from operating activities 356,015 393,976
CASH FLOWS (USED IN) PROVIDED FROM INVESTING ACTIVITIES

Capital expenditures (174,247) (175,541)
Purchase of restricted investments (11,881) —
Proceeds from sale of restricted investments 12,000 —
Principal payments on notes receivable 3,939 6,791
Investments in joint ventures and other investments 823 596
Other investing activities (14,241) (11,697)
Net cash used in investing activities (183,607) (179,851)
CASH FLOWS (USED IN) PROVIDED FROM FINANCING ACTIVITIES

Purchase of treasury stock (165,258) (170,604)
Dividend payments (66,086) (52,865)
Purchase of common stock held in trust (3,842) (7,202)
Purchase of common stock for settlement of stock-based compensation (226) (110)
Proceeds from issuance of debt, net of issuance costs 3,796 2,588
Tax sharing payment from Wendy’s — 9,116
Principal payments on other long-term debt obligations (7,376) (4,060)
Net cash used in financing activities (238,992) (223,137)
Effect of exchange rate changes on cash 10,618 (9,469)
Decrease in cash and cash equivalents (55,966) (18,481)

Cash and cash equivalents at beginning of year 157,602 176,083
Cash and cash equivalents at end of year $ 101,636 $ 157,602


SEGMENT REPORTING
(Unaudited)
De ce m be r 28, 2008 % of Total De ce m be r 30, 2007 % of Total
REVENUES
Canada $ 510,787 90.6% $ 474,221 92.0%
U.S. 52,902 9.4% 41,223 8.0%
Total Revenues $ 563,689 100.0% $ 515,444 100.0%
SEGMENT OPERATING INCOME (LOSS)

Canada $ 137,146 118.4% $ 126,165 100.4%
U.S. (*) (21,300) (18.4)% (477) (0.4)%
Reportable Segment Operating Income 115,846 100.0% 125,688 100.0%
Corporate Charges (7,981) (9,461)
Consolidated Operating Income 107,865 116,227
Interest, net (5,044) (3,968)
Income taxes (33,694) (36,589)
Net Income $ 69,127 $ 75,670
Ye ar En de d
De ce m be r 28, 2008 % of Total De ce m be r 30, 2007 % of Total
REVENUES
Canada $ 1,879,799 92.0% $ 1,741,372 91.9%
U.S. 163,894 8.0% 154,478 8.1%
Total Revenues $ 2,043,693 100.0% $ 1,895,850 100.0%
SEGMENT OPERATING INCOME (LOSS)

Canada $ 507,006 105.5% $ 467,884 101.0%
U.S. (*) (26,488) (5.5)% (4,804) (1.0)%
Reportable Segment Operating Income 480,518 100.0% 463,080 100.0%
Corporate Charges (36,952) (37,971)
Consolidated Operating Income 443,566 425,109
Interest, net (19,632) (16,707)
Income taxes (139,256) (138,851)
Net Income $ 284,678 $ 269,551
(*) Fourth quarter and full year 2008 U.S. segment operating income includes $21,266 of asset impairment and related restaurant
closure costs.
%
De ce m be r 28, 2008 De ce m be r 30, 2007 $ C h an ge C h an ge
Sales is comprised of:
Warehouse sales $ 331,770 $ 290,298 $ 41,472 14.3%
Company-operated restaurant sales 6,717 12,478 (5,761) (46.2)%
Sales from restaurants consolidated under FIN 46R 33,568 32,434 1,134 3.5%
$ 372,055 $ 335,210 $ 36,845 11.0%
Ye ar En de d
%
De ce m be r 28, 2008 De ce m be r 30, 2007 $ C h an ge C h an ge
Sales is comprised of:
Warehouse sales $ 1,173,738 $ 1,067,106 $ 106,632 10.0%
Company-operated restaurant sales 38,327 56,161 (17,834) (31.8)%
Sales from restaurants consolidated under FIN 46R 135,950 125,307 10,643 8.5%
$ 1,348,015 $ 1,248,574 $ 99,441 8.0%

SYSTEMWIDE RESTAURANT COUNT
Incre ase / Incre ase /

As of As of (De cre ase ) As of (De cre ase )
De ce m be r 28, 2008 S e pte m be r 28, 2008 From Prior Q u arte r De ce m be r 30, 2007 From Prior Ye ar
Tim Hortons
Canada
Company-
operated 15 13 2 30 (15)
Franchised 2,902 2,857 45 2,793 109
2,917 2,870 47 2,823 94
% Franchised 99.5% 99.5% 98.9%
U.S.
Company-
operated 19 30 (11) 42 (23)
Franchised 501 394 107 356 145
520 424 96 398 122
% Franchised 96.3% 92.9% 89.4%
Total Tim Hortons
Company-
operated 34 43 (9) 72 (38)
Franchised 3,403 3,251 152 3,149 254
3,437 3,294 143 3,221 216
% Franchised 99.0% 98.7% 97.8%


Income Statement Definitions
Sales Primarily includes sales of products, supplies and restaurant equipment (except for initial equipment
packages sold to franchisees as part of the establishment of their restaurant’s business - see “Franchise
Fees”) that are shipped directly from our warehouses or by third party distributors to the restaurants,
which we include in warehouse or distribution sales. Sales include canned coffee sales through the grocery
channel. Sales also include sales from Company-operated restaurants and sales from restaurants that are
consolidated in accordance with FIN 46R.
Rents and Royalties Includes franchisee royalties and rental revenues.
Franchise Fees Includes the sales revenue from initial equipment packages, as well as fees for various costs and expenses
related to establishing a franchisee’s business.
Cost of Sales Includes costs associated with our distribution business, including cost of goods, direct labour and
depreciation, as well as the cost of goods delivered by third-party distributors to the restaurants, and for
canned coffee sold through grocery stores. Cost of sales also includes food, paper and labour costs for
Company-operated restaurants and restaurants that are consolidated in accordance with FIN 46R.
Operating Expenses Includes rent expense related to properties leased to franchisees and other property-related costs
(including depreciation).
Franchise fee costs Includes costs of equipment sold to franchisees as part of the commencement of their restaurant business,
as well as training and other costs necessary to ensure a successful restaurant opening.
General and Administrative Includes costs that cannot be directly related to generating revenue, including expenses associated with
our corporate and administrative functions, allocation of expenses related to corporate functions,
depreciation of office equipment, the majority of our information technology systems, and head office real
estate.
Equity Income Includes income from equity investments in joint ventures and other minority investments over which we
exercise significant influence. Equity income from these investments is considered to be an integrated part
of our business operations and is, therefore, included in operating income. Income amounts are shown as
reductions to total costs and expenses.
Asset Impairment and related Represents non-cash charges relating to the impairment of long-lived assets. It also includes costs related
closure costs to restaurant closures made outside of the normal course of operations.
Other Expense (Income), Net Includes expenses (income) that are not directly derived from the Company’s primary businesses. Items
include currency adjustments, gains and losses on asset sales, minority interest related to the
consolidation of restaurants pursuant to FIN 46R, and other asset write-offs.
Comprehensive Income Represents the change in our net assets during the reporting period from transactions and other events
and circumstances from non-owner sources. It includes net income and other comprehensive income such
as foreign currency translation adjustments and the impact of cash flow hedges.
TIM HORTONS INC.

Safe Harbor Under the Private Securities Litigation Reform Act of 1995
The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a “safe harbor” for forward-looking statements to encourage
companies to provide prospective information, so long as those statements are identified as forward-looking and are accompanied by
meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those disclosed in the
statement. Tim Hortons Inc. (the “Company”) desires to take advantage of the “safe harbor” provisions of the Act.
Certain information provided or stated, including statements regarding future financial performance and the expectations and objectives
of management, is forward-looking. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or
current facts. They often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of
similar meaning, or future or conditional verbs, such as “will,” “should,” “could” or “may.” The following factors, in addition to other factors
set forth in our Form 10-K filed on February 26, 2008 with the U.S. Securities and Exchange Commission (“SEC”) and the Canadian securities
regulators, and in other press releases, communications, or filings made with the SEC or the Canadian securities regulators, and other possible
factors we have not identified, could affect our actual results and cause such results to differ materially from those anticipated in forward-
looking statements.
Competition. The quick-service restaurant industry is intensely competitive with respect to price, service, location, personnel, qualified
franchisees, real estate sites and type and quality of food. The Company and its franchisees compete with international, regional and local
organizations, primarily through the quality, variety, and value perception of food products offered. The number and location of units, quality
and speed of service, attractiveness of facilities, effectiveness of advertising/marketing and operational programs, sales and new product
introductions and promotions, discounting activities, price and new product development by the Company and its competitors are also
important factors. Certain of the Company’s competitors, most notably in the U.S., have greater financial and other resources than we do,
including substantially larger marketing budgets and greater leverage due to size from their marketing budgets.
Economic, Market and Other Conditions. The quick-service restaurant industry is affected by changes in international, national, regional,
and local economic and political conditions, consumer preferences and perceptions (including food safety, health or dietary preferences and
perceptions), discretionary spending patterns, consumer confidence, demographic trends, seasonality, weather events and other calamities,
traffic patterns, the type, number and location of competing restaurants, enhanced governmental regulation (including nutritional and
franchise regulations), changes in capital market conditions that affect valuations of restaurant companies in general or the value of the
Company’s stock in particular, litigation relating to food quality, handling or nutritional content, and the effects of war or terrorist activities
and any governmental responses thereto. Factors such as inflation, higher energy and/or fuel costs, food costs, the cost and/or availability of
a qualified workforce and other labour issues, benefit costs, legal claims, legal and regulatory compliance (including environmental
regulations), new or additional sales tax on the Company’s products, disruptions in its supply chain or changes in the price, availability and
shipping costs of supplies, and utility and other operating costs, also affect restaurant operations and expenses and impact same-store sales
and growth opportunities. The ability of the Company and its franchisees to finance new restaurant development, improvements and additions
to existing restaurants, acquire and sell restaurants, and pursue other strategic initiatives (such as acquisitions and joint ventures), are
affected by economic conditions, including interest rates and other government policies impacting land and construction costs and the cost
and availability of borrowed funds. In addition, unforeseen catastrophic or widespread events affecting the health and/or welfare of large
numbers of people in the markets in which the Company’s restaurants are located and/or which otherwise cause a catastrophic loss or
interruption in the Company’s ability to conduct its business, would affect its ability to maintain and/or increase sales and build new
restaurants.
The Importance of Canadian Segment Performance and Brand Reputation. The Company’s financial performance is highly dependent
upon its Canadian operating segment, which accounted for approximately 92.0% of its consolidated revenues, and all of its profit, in 2008. Any
substantial or sustained decline in the Company’s Canadian business would materially and adversely affect its financial performance. The
Company’s success is also dependent on its ability to maintain and enhance the value of its brand, its customers’ connection to its brand, and
a positive relationship with its franchisees. Brand value can be severely damaged, even by isolated incidents, including those that may be
beyond the Company’s control such as actions taken or not taken by its franchisees relating to health or safety, litigation and claims
(including litigation by, other disputes with, or negative relationship with franchisees), security breaches or other fraudulent activities
associated with its electronic payment systems, and incidents occurring at or affecting its strategic business partners (including in connection
with co-branding initiatives and our self-serve kiosk model), affiliates, corporate social responsibility programs, or falsified claims or health or
safety issues at our manufacturing plants.
Factors Affecting Growth. There can be no assurance that the Company will be able to achieve new restaurant growth objectives or
same-store sales growth in Canada or the U.S. The Company’s success depends on various factors, including many of the factors set forth in
this cautionary statement, as well as sales levels at existing restaurants and factors affecting construction costs generally. In addition, the U.S.
markets in which the Company seeks to expand may have competitive conditions (including higher construction, occupancy, or operating
costs), consumer tastes, or discretionary spending patterns that may differ from its existing markets, and its brand is largely unknown in many
U.S. markets. There can be no assurance that the Company will be able to successfully adapt its brand, development efforts, and restaurants to
these differing market conditions. In addition, early in the development of new markets, the opening of new restaurants may have a negative
effect on the same-store sales of existing restaurants in the market. In some of the Company’s U.S. markets, the Company has not yet achieved
the level of penetration needed in order to drive brand recognition, convenience, increased leverage to marketing dollars, and other benefits
the Company believes penetration yields. When the Company franchise locations in certain U.S. markets, this can result in increased
franchisee relief and support costs, which lowers its earnings. The Company may also continue to selectively close restaurants in the U.S. that
are not achieving acceptable levels of profitability or change its growth strategies over time, where appropriate. Such closures may be
accompanied by impairment charges that may have a negative impact on our earnings. The Company may also pursue strategic alliances
(including co-branding) with third parties for different types of development models and products in the U.S. Entry into such relationships as
well as the expansion of our current business through such initiatives may expose us to additional risks that may adversely affect our brand
and business.
Manufacturing and Distribution Operations. The occurrence of any of the following factors is likely to result in increased operating costs
and depressed profitability of the Company’s distribution operations and may also damage its relationship with franchisees: higher
transportation costs; shortages or changes in the cost or availability of qualified workforce and other labour issues; equipment failures;
disruptions (including shortages or interruptions) in its supply chain; price fluctuations; climate conditions; inflation; decreased consumer
discretionary spending and other changes in general economic and political conditions driving down demand; franchise dissatisfaction with
price or quantity; physical, environmental or technological disruptions in the Company or its suppliers’ manufacturing and/or warehouse
facilities or equipment; changes in international commodity markets (especially for coffee, which is highly volatile in price and supply, sugar,
edible oils and wheat); and, the adoption of additional environmental or health and safety laws and regulations. The Company’s
manufacturing and distribution operations in the U.S. are also subject to competition from other qualified distributors, which could reduce the
price the Company can charge for supplies sold to U.S. franchisees. Additionally, there can be no assurance that the Company and its joint
venture partner will continue with the Maidstone Bakeries joint venture. If the joint venture terminates, it may be necessary, under certain
circumstances, for the Company to build its own par-baking facility or find alternate products or production methods.
Government Regulation. The Company and its franchisees are subject to various federal, state, provincial, and local (“governmental”)
laws and regulations. The development and operation of restaurants depend to a significant extent on the selection, acquisition, and
development of suitable sites, which are subject to laws and regulations regarding zoning, land use, environmental matters (including
limitation of vehicle emissions in drive-thrus; anti-idling bylaws; regulation of litter, packaging and recycling requirements and other
governmental laws and regulations), traffic, franchise, design and other matters. Additional governmental laws and regulations affecting the
Company and its franchisees include: business licensing; franchise laws and regulations; health, food preparation, sanitation and safety;
labour (including applicable minimum wage requirements, overtime, working and safety conditions, family leave and other employment matters,
and citizenship requirements); nutritional disclosure and advertising; tax; employee benefits; accounting; and anti-discrimination. Changes in
these laws and regulations, or the implementation of additional regulatory requirements, particularly increases in applicable minimum wages;
tax law, planning or other matters that may, among other things, affect our anticipated effective tax rate and/or tax reserves; business planning
within our corporate
structure; our strategic initiatives and/or the types of projects we may undertake in furtherance of our business, or franchise requirements,
may adversely affect the Company’s financial results.
Foreign Exchange Fluctuations. The Company’s Canadian restaurants are vulnerable to increases in the value of the U.S. dollar as certain
commodities, such as coffee, are priced in U.S. dollars in international markets. Conversely, the Company’s U.S. restaurants are impacted when
the U.S. dollar falls in value relative to the Canadian dollar, as U.S. operations would be less profitable because of the increase in U.S.
operating costs resulting from the purchase of supplies from Canadian sources, and profits from U.S. operations will contribute less to (or, for
losses, have less of an impact on) the Company’s consolidated results. Increases in these costs could make it harder to expand into the U.S.
and increase relief and support costs to U.S. franchisees, affecting the Company’s earnings. The opposite impact occurs when the U.S. dollar
strengthens against the Canadian dollar. In addition, fluctuations in the values of Canadian and U.S. dollars can affect the value of the
Company’s common stock and any dividends the Company pays.
Mergers, Acquisitions and Other Strategic Transactions. The Company intends to evaluate potential mergers, acquisitions, joint venture
investments, alliances (including co-branding initiatives), vertical integration opportunities and divestitures, which are subject to many of the
same risks that also affect new store development. In addition, these transactions involve various other risks, including accurately assessing
the value, future growth potential, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates;
the potential loss of key personnel of an acquired business; the Company’s ability to achieve projected economic and operating synergies;
difficulties successfully integrating, operating, maintaining and managing newly-acquired operations or employees; difficulties maintaining
uniform standards, controls, procedures and policies; the possibility the Company could incur impairment charges if an acquired business
performs below expectations; unanticipated changes in business and economic conditions affecting an acquired business; ramp-up costs,
whether anticipated or not; the potential for the unauthorized use of the Company’s trademarks and brand name by third parties; the
possibility of a breach of contract or spoilation of the business relationship with a third party; the potential negative effects such transactions
may have on the Company’s relationship with franchisees; the potential exposure to franchisees and others arising from the Company’s
reliance on and dissemination of information provided by third parties; and diversion of management’s and franchisee’s attention from the
demands of the existing business. In addition, there can be no assurance that the Company will be able to complete desirable transactions, for
reasons including restrictive covenants in debt instruments or other agreements with third parties, including the Maidstone Bakeries joint
venture arrangements, or a failure to secure financing in tight credit markets.
Privacy Protection. If the Company fails to comply with new and/or increasingly demanding laws and regulations regarding the
protection of customer, supplier, vendor, franchisee, employee and/or business data, or if the Company experiences a significant breach of
customer, supplier, vendor, franchisee, employee or company data, the Company’s reputation could be damaged and result in lost sales, fines,
lawsuits and diversion of management attention. The introduction of credit payment systems and the Company’s reloadable cash card makes
us more susceptible to a risk of loss in connection with these issues, particularly with respect to an external security breach of customer
information that the Company, or third parties under arrangement(s) with it, control.
Other Factors. The following factors could also cause the Company’s actual results to differ from its expectations: an inability to retain
executive officers and other key personnel or attract additional qualified management personnel to meet business needs; an inability to
adequately protect the Company’s intellectual property and trade secrets from infringement actions or unauthorized use by others (including
in certain international markets that have uncertain or inconsistent laws and/or application with respect to intellectual property and contract
rights); operational or financial shortcomings of franchised restaurants and franchisees; liabilities and losses associated with owning and
leasing significant amounts of real estate; failures of or inadequacies in computer systems at restaurants, the distribution facilities, the
Company’s manufacturing facilities, the Maidstone Bakeries facility, or at the Company’s office locations, including those that support,
secure, track and/or record electronic payment transactions; the transition to an integrated financial system, which could present risks of
maintaining and designing internal controls and SOX 404 compliance; litigation matters, including obesity litigation; health and safety risks or
conditions of the Company’s restaurants associated with design, construction, site location and development, indoor or airborne
contaminants and/or certain equipment utilized in operations; employee claims for employment or labour matters, including potentially class
action suits, regarding wages, discrimination, unfair or unequal treatment, harassment, wrongful termination, overtime compensation and hour
claims; claims from franchisees regarding profitability; falsified claims; implementation of new or changes in interpretation of U.S. GAAP
policies or practices; and potential unfavorable variance between estimated and actual liabilities and volatility of actuarially-determined losses
and loss estimates. The current global financial crisis presents additional uncertainties that could also negatively impact our liquidity,
including if the counterparties to our revolving credit facilities or our interest rate and/or total return swaps fail to perform their obligations in
accordance with the terms of our agreements. In addition, we have significant investments of cash in money market funds, which could
experience sharp decliners in returns or could otherwise be at risk depending upon the extent of the instability in the credit and investment
markets.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Except as
required by federal or provincial securities laws, the Company undertakes no obligation to publicly release any revisions to the forward-
looking statements contained in this release, or to update them to reflect events or circumstances occurring after the date of this release, or to
reflect the occurrence of unanticipated events.
Exhibit 99.2

LOGO
Tim Hortons Inc.

Raises Quarterly Dividend Payments by 11.1% and declares a $0.10 per share dividend
OAKVILLE, ONTARIO, (February 20, 2009): Tim Hortons Inc. (NYSE: THI, TSX: THI) today announced the Board of Directors has approved
a 11.1% increase in the quarterly dividend to $0.10 per share.
The Board of Directors has approved an increase in the quarterly dividend to $0.10 per share and the first payment of a dividend at the new
rate is payable on March 17th, 2009 to shareholders of record as of March 3rd, 2009. The Company’s current dividend policy is to pay a total of
20-25% of prior year, normalized annual net earnings in dividends each year, returning value to shareholders based on the Company’s
earnings growth.
Dividends are paid in Canadian dollars to all shareholders with Canadian resident addresses whose shares are registered with Computershare
(the Company’s transfer agent). For all other shareholders, including all shareholders who hold their shares indirectly (i.e., through their
broker) and regardless of country of residence, the dividend will be converted to U.S. dollars on March 10th, 2009 at the daily noon rate
established by the Bank of Canada and paid in U.S. dollars on March 17th, 2009.

www.timhortons.com.
CONTACTS:
INVESTORS: Scott Bonikowsky: (905) 339-6186 or investor_relations@timhortons.com
MEDIA: Diane Slopek-Weber: (905) 339-6229 or slopek-weber_dianne@timhortons.com
Exhibit 99.3

LOGO
Tim Hortons Inc. confirms $200 million share repurchase program

planned to commence in first quarter of 2009
OAKVILLE, ONTARIO, (February 20, 2009): Tim Hortons Inc. (NYSE:THI, TSX: THI) today announced it plans to commence its previously
announced 12-month share repurchase program in March 2009, subject to receipt of final regulatory approval. Commencement of the new
program was shifted to the first quarter of 2009 to fully align the Company’s capital allocation decisions including capital expenditures,
dividends and share repurchases.
A notice of intention to make a normal course issuer bid will be filed with the Toronto Stock Exchange (TSX) for a stock repurchase program
authorizing the repurchase of up to $200 million in common shares, not to exceed the regulatory maximum of 9,077,438 shares or 5%, of the
outstanding common shares.
The Company announced earlier today in conjunction with its 2008 fourth quarter and year end results that it has commenced a feasibility
assessment of various initiatives relating to our corporate structure, with the support of external advisors, including potentially reorganizing as
a Canadian public company. (See 2008 fourth quarter and year end earnings release for additional information.) If a subsequent decision is
made to proceed with changes to the Company’s corporate structure, timing of share repurchases could be affected, including potentially
deferring future purchases subsequent to the first quarter until after a transaction is implemented.
“Tim Hortons is committed to creating value for shareholders. The Company’s continued strong financial position and cash flows were key
factors in the decision to commence the new share repurchase program, which represents our third $200 million program,” said Don Schroeder,
president and CEO.
As a result of fully aligning the timing of the share repurchase program with annual budget and the capital allocation process, we plan to
commence purchases in March, and, accordingly, shares repurchased in the first quarter of 2009 will be lower than in the first quarter of 2008.
Timing of share purchases in the program will initially be solely at management’s discretion given regulatory requirements, and market, cost
and other considerations, unlike the previous program which included a 10b5-1 or automatic trading program at inception.
Repurchases will be made by Tim Hortons directly, or through one or more of its direct or indirect subsidiaries or parent organization, on the
Toronto Stock Exchange and/or the New York Stock Exchange, subject to compliance with applicable regulatory requirements.
There can be no assurance as to the precise number of shares that will be repurchased under the stock repurchase program, or the aggregate
dollar amount of the shares purchased. Tim Hortons may discontinue purchases at any time, subject to compliance with applicable regulatory
requirements. Shares purchased pursuant to the stock repurchase program will be cancelled, held in treasury, and/or held by one of the
Company’s subsidiaries.
The maximum number of shares that may be purchased during any trading day may not exceed 145,092 shares, representing 25% of the
average daily trading volume on the Toronto Stock Exchange for the Company’s shares during the previous six months excluding purchases
made by the Company under its normal course issuer bid. This limit, for which there are permitted exceptions, is determined in accordance with
regulatory requirements.
The Company purchased 5,951,995 shares under its 2007-2008 share repurchase program at an average purchase price of $33.52 per share. In
2008, the TDL RSU Plan Trust also purchased 115,947 shares at an average price of $33.16 per share. In addition, 6,802 shares were purchased
on the open market through an agent to settle equity compensation awards that were not settled from the Trust, at an average price of $33.13
per share.
Safe Harbor Statement

Certain information in this news release, particularly information regarding our 2009 performance targets as well as other information regarding
future economic performance, finances, and plans, expectations and objectives of management, is forward-looking as contemplated under the
Private Securities Litigation Reform Act of 1995. Various factors including those described as “risk factors” in the Company’s 2007 Annual
Report on Form 10-K, filed February 26, 2008, and in our 2008 Annual Report on Form 10-K to be filed February 25, 2009, and those risk factors
set forth in our Safe Harbor Statement, as well as other possible factors not listed or described in the foregoing, could affect the Company’s
actual results and cause such results to differ materially from those expressed in forward-looking statements. As such, readers are cautioned
not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date hereof. Except as
required by federal or provincial securities laws, the Company undertakes no obligation to publicly release any revisions to the forward
looking statements contained in this release, or to update them to reflect events or circumstances occurring after the date of this release, or to
reflect the occurrence of unanticipated events, even if new information, future events or other circumstances have made the forward-looking
statements incorrect or misleading. Please review the Company’s Safe Harbor Statement at timhortons.com/en/about/safeharbor.html.

www.timhortons.com.
For Further information:

Investors: Scott Bonikowsky: (905) 339-6186 or investor_relations@timhortons.com
Media: Diane Slopek-Weber: (905) 339-6229 or slopek-weber@timhortons.com

Tim Hortons Inc. 8-K (Events or Changes Between Quarterly Reports) 2009-02-20

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Tim Hortons Inc. 8-K (Events or Changes Between Quarterly Reports) 2009-02-20

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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

TIM HORTONS INC.

Delaware 001-32843 51-0370507

874 Sinclair Road, Oakville, ON, Canada L6K 2Y1

Item 2.02 Results of Operations and Financial Condition.

Item 2.05 Costs Associated with Exit or Disposal Activities.

Total asset impairment and other $ 13,703 $ 7,563 $21,266

Compensatory Arrangement of Certain Officers

Item 8.01 Other Events.

Item 9.01 Financial Statements and Exhibits.

TIM HORTONS INC.

Date: February 20, 2009 By: /s/ Jill E. Aebker

FOR IMMEDIATE RELEASE

Tim Hortons Inc. Announces

Segmented Performance Commentary

Board of Directors Appointment

$200 million Share Repurchase Program

2009 Outlook & Targets

The Company has established the following 2009 performance targets*:

Disclosure on Non-GAAP Financial Measure

Table 1 Pro forma: Adjusted operating income to U.S. GAAP reconciliation

Tim Hortons Inc. Overview

For Further information:

TIM HORTONS INC. AND SUBSIDIARIES

COSTS AND EXPENSES

OPERATING INCOME 107,865 116,227 (8,362) (7.2)%

INCOME BEFORE INCOME TAXES 102,821 112,259 (9,438) (8.4)%

NET INCOME $ 69,127 $ 75,670 $ (6,543) (8.6)%

Dividends per share of common stock $ 0.09 $ 0.07 $ 0.02

N/M - not meaningful

TIM HORTONS INC. AND SUBSIDIARIES

COSTS AND EXPENSES

OPERATING INCOME 443,566 425,109 18,457 4.3%

INCOME BEFORE INCOME TAXES 423,934 408,402 15,532 3.8%

NET INCOME $ 284,678 $ 269,551 $ 15,127 5.6%

Dividends per share of common stock $ 0.36 $ 0.28 $ 0.08

N/M - not meaningful

TIM HORTONS INC. AND SUBSIDIARIES

TIM HORTONS INC. AND SUBSIDIARIES

TIM HORTONS INC. AND SUBSIDIARIES

Net cash provided from operating activities 356,015 393,976

CASH FLOWS (USED IN) PROVIDED FROM INVESTING ACTIVITIES

Net cash used in investing activities (183,607) (179,851)

CASH FLOWS (USED IN) PROVIDED FROM FINANCING ACTIVITIES

Net cash used in financing activities (238,992) (223,137)

Effect of exchange rate changes on cash 10,618 (9,469)

Decrease in cash and cash equivalents (55,966) (18,481)

Cash and cash equivalents at end of year $ 101,636 $ 157,602

TIM HORTONS INC. AND SUBSIDIARIES

SEGMENT OPERATING INCOME (LOSS)

SEGMENT OPERATING INCOME (LOSS)

TIM HORTONS INC. AND SUBSIDIARIES

Incre ase / Incre ase /

% Franchised 99.0% 98.7% 97.8%

TIM HORTONS INC. AND SUBSIDIARIES

TIM HORTONS INC.

FOR IMMEDIATE RELEASE

Tim Hortons Inc.

Tim Hortons Inc. Overview

FOR IMMEDIATE RELEASE

Tim Hortons Inc. confirms $200 million share repurchase program

Safe Harbor Statement

Tim Hortons Inc. Overview